Britain’s tech sector is now worth $1,000,000,000 following the surge in investment during the Covid-19 pandemic, making it the third country in the world after the US and China to hit valuation.
According to data prepared by Dealroom for the UK’s Digital Economy Council, Britain’s tech ecosystem was valued at $446 billion in 2018, but is now valued at $942 billion after growing 42% between 2020 and 2021 due to increased investment in software and digital. companies at the start of the pandemic.
The increase in investment has also helped catapult a number of unicorns (companies valued at $1 billion or more) to decacorn status (companies worth more than $10 billion), of which there is now a total of 13 in the UK.
This includes financial technology companies eToro, Admiral Group, Rapyd, Wise, FNZ, Revolut, Checkout.com and WorldPay, as well as e-commerce platforms Ocado and Deliveroo. Other British decacorns include data center provider Global Switch, semiconductor maker ARM and big data company Markit.
Another 14 companies — including cybersecurity firm Synk, zero-emission transportation company Arrival and virtual events platform Hopin — are valued between $5 billion and $10 billion.
While the majority of unicorns are still concentrated in London, there are now a total of 42 unicorns spread across regions across the UK.
“Our tech industry has gone from strength to strength, overtaking the rest of Europe and entering the history books as the third country to reach this milestone,” said Digital Minister Chris Philp.
“We are working hard to make the UK the best place in the world to found, grow or launch tech companies – whether they are start-ups or global innovators – by ensuring they have the best talents, investments and regulations to thrive. ”
In the first three months of 2022, UK tech companies raised a further £6bn, of which more than half (£3.3bn) went to fintech firms alone. The Department for Culture, Media and Sport (DCMS) published research last year which found that Britain’s tech sector is on track to add an additional £190bn to the economy and create nearly 700,000 jobs over the next three years.
Gerard Grech, chief executive of Tech Nation, said the UK’s tech sector reaching $1,000,000,000 was a watershed moment: “The industry has weathered tough global challenges and emerged stronger than ever. . 10 years ago people were saying there weren’t enough startups in the UK. Five years ago, people were saying there weren’t enough scale increases.
“Every day, innovative and experimental technology companies are launched across the UK that will become the next generation of unicorns and decacorns, and at Tech Nation we are committed to supporting and nurturing these high-potential companies across the country.”
Daniel Korski, CEO of government technology accelerator Public, added: “By providing the right tools and resources, as well as support networks, we can ensure the industry continues to grow and remain a global leader in technology. technology.
During the pandemic, more than £1 billion in convertible loans have been granted to a total of nearly 1,200 startups under the government’s Future Fund scheme, which was launched in April 2021 by Finance Minister Rishi Sunak to support start-ups and loss-making companies with the necessary investment. stay afloat during the pandemic.
The British Business Bank revealed on September 14, 2021 that, thanks to loans from the Future Fund, the government now has stakes in 158 high-growth startups.
The massive increase in investment at the start of the pandemic also coincides with a surge in the number of new tech companies being set up, with UK business start-up figures from March 2021 showing that a new company technology premiered every half hour in 2020, with nearly 19,500 total sign-ups across the UK.
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